Nintendo full year financial results [23.2B yen loss, 3.6M Wii U/12M 3DS forecast]

zomgbbqftw

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Jan 21, 2011
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http://www.nintendo.co.jp/ir//pdf/2014/140507.pdf

It's in Japanese.

Key information:

Operating loss 46.4bn Yen, Net loss 23.2bn Yen.

Wii U at 6.17m shipped, forecast of 3.6m for the coming year. Q4 shipment of 0.31m. 2013/14 shipment, 2.72m vs 2.8m forecast

- Software at 32.28m, forecast of 20m for the coming year. 2013/14 software shipment, 18.86m vs 19m forecast

3DS at 43.33m shipped, forecast of 12m for the coming year. Q4 shipment of 0.59m. 2013/14 shipment, 12.24m vs 13.5m forecast

- Software at 162.92m, forecast of 67m for the coming year. 2013/14 software shipment, 67.89m vs 66m forecast

Cash and equivalents down from $4.7bn to $3.4bn, a drop of $1.3bn over the year.

http://www.nintendo.co.jp/ir//pdf/2014/140507e.pdf - English link.
Wii U Unit Sales (Unit: Million)

Code:
Code:
Hardware       Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2012/13       -        -      3.06     0.39      3.45     3.45

FY 2013/14     0.16     0.30     1.95      0.31        2.72     6.17



Software       Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2012/13       -        -      11.69    1.73      13.42    13.42   

FY 2013/14     1.03     5.27      9.66      2.9       18.86    32.28
3DS Unit Sales (Unit: Million)

Code:
Code:
Hardware       Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2010/11       -        -        -      3.61      3.61     3.61

FY 2011/12     0.71     2.36      8.36    2.10      13.53    17.13       

FY 2012/13     1.86     3.20      7.65    1.24      13.95    31.09

FY 2013/14     1.40     2.49      7.76       0.59     12.24    43.33



Software       Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2010/11      -        -         -      9.43      9.43     9.43

FY 2011/12     4.53     3.60     19.91    7.96      36.00    45.42    

FY 2012/13     7.39     11.64    20.53    10.05     49.61    95.03

FY 2013/14     11.01    16.37    29.87      10.64       67.89    162.92
 

Richie

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May 24, 2011
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Holy shit, they're expecting less than 4 million Wii Us for the entire fiscal year?!
 

E-phonk

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12m 3DS - they'll need some announcements for that.

3.6 for WiiU is their first conservative (ie, realistic?) number they release.
 

JoeM86

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Aug 11, 2012
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It should be noted that the large operating loss and overall net loss is largely due to some one-time injections they had in Q4.

Remember, they added 15bn yen into R&D and 8bn yen into Marketing. That essentially covers their entire net loss and the increase in Operating Loss.

If you compare Q1 through Q3 for the last few years, there's clear improvement.
 

Richie

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May 24, 2011
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Nintendo knows its not going to blow up in sales.
Part of me hopes they've got a shitload of good stuff coming up, and they're having a minuscule forecast so they can do the opposite of last year and brag about surpassing it.

...Keyword being "hopes".
 

Phediuk

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Sep 10, 2013
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Okay, let's make predictions now.

How long will Nintendo remain in the console business if they continue to post losses like this?
 

vinnygambini

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Aug 7, 2013
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For Q4, Nintendo posted an operating loss of 450 million, resulting to a 330 million loss(net income).

For their Fiscal-Year, Nintendo posted an operating loss of 465 million, resulting to a 240 million loss (net income).

For FY15 (April 2014-March 2015) Nintendo's guidance are as follows:

Operating Income: 400 million

Net Income: 200 million

Year-end results are worse than expected; however, guidance does seem conservative except for 3DS, I was personally aiming at 9 million. It will be brought down.

Wii U - 3.6 million

3DS - 12 million
 

Tripon

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May 24, 2013
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English release:
(1) Fiscal year ended March 31, 2014 Nintendo Co., Ltd. (“the Company”) and its consolidated subsidiaries (together with the Company, “Nintendo”) continues to pursue its basic strategy of “Gaming Population Expansion” by offering compelling products that anyone can enjoy, regardless of age, gender or gaming experience.

During the fiscal year ended March 31, 2014, for “Nintendo 3DS (3DS, 3DS XL and 2DS),” “Pokémon X/Pokémon Y,” simultaneously released globally in October last year, marked 12.26 million units in sales, while “Animal Crossing: New Leaf,” released in Japan in the previous fiscal year and in June last year in the United States and Europe, marked 3.80 million units (7.66 million units on a cumulative basis) in sales.

In addition, key first-party titles such as “Luigi’s Mansion: Dark Moon,” “The Legend of Zelda: A Link Between Worlds” and “Mario & Luigi: Dream Team” showed steady sales, with each title selling more than two million units. Moreover, there have also been hit titles from third-party publishers. As a result, the global sales of the “Nintendo 3DS” hardware and software reached 12.24 million and 67.89 million units respectively.

With respect to “Wii U,” while five key first-party titles, such as “Super Mario 3D World,” “New Super Mario Bros. U” and “New Super Luigi U” became million-seller titles, the “Wii U” business as a whole showed slow growth. The global sales of the “Wii U” hardware and software reached only 2.72 million and 18.86 million units respectively.

Regarding “Nintendo DS (DS, DS Lite, DSi and DSi XL),” the global sales of its hardware and software were 0.13 million and 10.29 million units respectively. Also, the sales of the “Wii” hardware and software were 1.22 million and 26.16 million units respectively.

Net sales as a result were 571.7 billion yen (of which overseas sales were 394.7 billion yen or 69.0% of the total sales). The “Wii U” hardware still has a negative impact on Nintendo’s profits owing mainly to its markdown in the United States and Europe, and unit sales of software, which has high profit margins, did not grow sufficiently, leading to a gross profit of 163.2 billion yen. Total selling, general and administrative expenses exceeded gross profit, resulting in an operating loss of 46.4 billion yen.

Also, due to depreciation of the yen at the end of this period compared with the one at the end of the last fiscal year, exchange gains totaled 39.2 billion yen, leading to an ordinary income of 6.0 billion yen. On the other hand, mainly due to the balance of deferred tax assets reduced in relation to the losses carried over in the United States, there is a net loss of 23.2 billion yen. (2) Outlook for fiscal year ending March 31, 2015 For “Nintendo 3DS,” its consolidated global hardware sales reached 43 million units, which represent a sufficient installed base upon which to expand software sales.

In terms of software, “Mario Golf: World Tour” was released in May globally. Also, “Tomodachi Life,” a title that sold 1.85 million units on a cumulative basis in the Japanese market, in which players can enjoy watching over the carefree daily lives of the virtual characters (Miis) of themselves and those close to them, will be released in the United States and Europe in June.

Also, “Super Smash Bros. for Nintendo 3DS” will be released globally in the upcoming summer. By continuing to provide key titles throughout the next fiscal year, too, Nintendo will strive to generate robust profits from the “Nintendo 3DS” platform business. Regarding “Wii U,” which still faces a challenging sales situation, Nintendo will focus on efforts that seek to stimulate the platform.

By providing software that takes advantage of the “Wii U GamePad,” utilizing its built-in functionality as an NFC reader/writer, and adding “Nintendo DS” Virtual Console titles to the “Wii U” software lineup, Nintendo will seek to enrich the value of the “Wii U GamePad,” the most important differentiator of “Wii U,” and as a result expand the sales of the “Wii U” platform.

In terms of compatible software, by positioning “Mario Kart 8,” scheduled to be released globally in May, and “Super Smash Bros. for Wii U,” scheduled to be released this winter, as two main drivers, both of which are titles that a wide range of consumers can enjoy either alone or with other players, Nintendo will seek to supply high quality games on a continuous basis. Moreover, Nintendo will also strive to proactively pursue its digital distribution business through the “Nintendo eShop.”

Based on these efforts, we project for the fiscal year ending March 31, 2015 net sales of 590.0 billion yen, an operating income of 40.0 billion yen, an ordinary income of 35.0 billion yen and a net income of 20.0 billion yen. Unit sales of the major products used for the forecast are listed on page 15 under the heading of “(5) Consolidated sales units, number of new titles, and sales units forecast” in the “Others” section. Exchange rate assumptions for the major currencies used for the forecasts are 100 yen per U.S. dollar and 140 yen per euro.
Read more at http://nintendoeverything.com/nintendo-reports-fy14-financial-results/
 

Cutebrute

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I fully expect Nintendo to slash the 12m estimate for the 3DS by the holidays. Didn't the 3DS only ship 13 million last year, even in light of the system's momentum?

The Wii U number will hold, if only because it can't go any lower.
 

E-phonk

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Okay, let's make predictions now.

How long will Nintendo remain in the console business if they continue to post losses like this?
Let's not - it's not that huge of a loss. They are improving their results as good as they can at the moment. I'd say they might be in for a profit again next year.
 

JAYSIMPLE

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Jan 19, 2013
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It's a shame that the Wii U sold so little. It's blatantly going to be the futures dreamcast, in that people, including myself, will be praising it in 10 years
 

Village_Idiot

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At the moment they're just realistic about the fact that they're only attracting fans.smash and kart are for the fans and not the casuals purchasers.

Also indicates little possibility of a price drop.

12m 3ds though... It is starting to age but the 2ds is cheap and it has an established library of first party games.
 

StreetsAhead

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Jun 13, 2011
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Software-wise, they're predicting 67 million sold units on 3DS and 20 million on the Wii U.

Last year they did 67.89 million on 3DS, and 18.86 million on Wii U.
 

Griss

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Sep 26, 2013
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Some interesting thoughts:
If those calculations about them having 6m Wii Us in inventory were correct, then they won't be able to shift even 2/3rds of what they've already made next year. That has to hurt.

Secondly, if the trend of them not hitting targets continues, they'll sell even worse than 3.6m.

Lastly, what are they currently on? Because I remember before Christmas a lot of people were predicting 12-15m lifetime for Wii U and I'd like to know where 3.6m this year would get them.
 
Nov 4, 2013
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Even 3.6m feels optimistic.
Even as someone who has been really down on Wii U I do suspect Mario Kart and Smash Brothers to eventually move some consoles.

Nintendo's problem is their great first party games needed to be coming quicker after the console launch.
 
Nov 4, 2013
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Some interesting thoughts:
If those calculations about them having 6m Wii Us in inventory were correct, then they won't be able to shift even 2/3rds of what they've already made next year. That has to hurt.

Secondly, if the trend of them not hitting targets continues, they'll sell even worse than 3.6m.

Lastly, what are they currently on? Because I remember before Christmas a lot of people were predicting 12-15m lifetime for Wii U and I'd like to know where 3.6m this year would get them.
3.6 mil this year would get them to about 10 mil sold. I believe they were just over 6 mil sold a couple months ago.